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• The Netherlands: Notaries to adjust their Code of ConductThe Royal Dutch Notarial Society (KNB) recently dropped the prohibition on directly recruiting potential clients, the requirement to ‘advertise objectively,’ as well as the prohibition on charging rates below cost price. In addition, the KNB adjusted and clarified a number of rules of conduct, including the ban on commissions, which has been worked out in greater detail in the new Policy Rule on Commissions. According to the Netherlands Competition Authority (NMa), competition between notaries is expected to get a boost, while, at the same time, respecting the notaries’ core values of independence and impartiality.
The adjustments are the result of a follow up investigation by the NMa to the 2007 Report on Professional Services that identified eight competition concerns in the self-regulation of notaries. This concerned rules that require 1) a mutual relationship between notaries that is benevolent and trust based, 2) notaries not to approach potential customers directly, 3) unbiased advertising, 4) fees above cost-price, 5) publication of integral and minimum tariffs, 6) fees not to be result based, 7) notaries not to pay commissions for intermediaries and 8) limited ability of notaries to work with intermediaries.
The adjustments to the code of conduct are intended to lead to a better understanding of the services notaries offer, to more options for clients, and possibly to a better price-quality ratio for consumers. The NMa had approached the trade association about potentially anticompetitive effects of some of its rules of conduct with which the KNB members, all notaries in the Netherlands, must comply. The adjustments to the code of conduct are the result of that intervention.
Since 2004, the NMa has looked into self-regulation by various professional groups. In 2006, the trade associations for architects, BNA and BNSP, adjusted their self-regulation policies. In June 2007, the NMa published its final report on the self-regulation of accountants. In 2011, the Netherlands Order of Accountants and Administration Consultants (NOvAA) adjusted its code of conduct.
Press spokesperson: Ms. Barbara van der Rest-Roest at +31-70-330-3362 or +31-6-22793063 (outside office hours). Alternatively, you can send an email to the NMa press office at [email protected]
